What is Bitcoin (BTC) Doing Right Now?
Bitcoin is currently trading just above $56,000 and is coming down to retest the support at $55,700. BTC managed to break above $55,700 on Sunday and is now back-testing this resistance to flip it into support. Once Bitcoin bounces from this crucial level with a healthy volume we can expect to challenge the resistance at $60,000 once again.
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Analyzing the Charts
Bitcoin was also facing minor resistance around $57,800 and managed to break above it yesterday. However, the price failed to retest the resistance at $60,000 and a sell-off was triggered around the $58,600 region.
This price movement indicated that the selling pressure is still there and if we do not see buyers step in around $55,700, we can retest $53,700 once again.
However, if we take a look at the 4-hour timeframe, we can see that Bitcoin is also forming a potential inverse head & shoulders pattern.
An inverse head & shoulders pattern is a bullish structure that indicates a big breakout is around the corner. If we do form the right shoulder of this pattern in the coming hours, we can expect a steady move towards $59,000.
If the structure plays out we can expect BTC to hit the $63,500 mark in the coming days. On the other hand, if Bitcoin loses the support at $55,700 in the coming hours and starts closing candles below it, this structure will no longer be valid.
Bitcoin is also looking quite bullish on the 1-day timeframe, and you can read our previous price analysis to get more insight into that.
Conclusion: What is Next for Bitcoin (BTC)?
Bitcoin is still showing some nice bullish signs on the shorter timeframes, and we can expect another rally soon. We are still extremely bullish on BTC in the long term and are expecting it to create a new all-time high by the end of the year. Right now, we will be waiting for Bitcoin to break above $60,000 and will be placing trades accordingly.
How to Trade Bitcoin (BTC)?
To understand the basics of Bitcoin trading, you can read our How To Trade Bitcoin Guide. It can prove helpful for traders who are just getting started with Bitcoin trading. You can also check out our list of top Bitcoin Exchanges To Trade With.
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